What is tds for shinfting

This query is : Resolved

amol dhage (Querist)
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29 October 2012 Respected sir,
i have info about
SHIFTING OF HEAVY MATERIAL OR MACHINERY CAN LIABLE TO PAY T.D.S OR NOT ?
IF YES Then what is the rate of TDS ?
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PLEASE GIVE ME SOLUTION

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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30 October 2012 what you want to know please elaborate and clarify what is the issue ??

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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03 August 2025 Hey! Here’s a clear answer on TDS for shifting heavy material or machinery:

Is TDS applicable on shifting heavy material or machinery?
Yes, if the payment made for shifting services qualifies as payment to a contractor or service provider, TDS is applicable under the Income Tax Act.

Shifting or transportation of heavy machinery usually falls under contractual services.

Relevant Section & Rate:
Section 194C of the Income Tax Act deals with TDS on payments to contractors and sub-contractors.

If you pay a contractor for shifting/transport services, you need to deduct TDS.

TDS Rate: Generally, 1% if the payment is to an individual or HUF contractor.

2% if the payment is to other entities (companies, firms).

Conditions for TDS Deduction:
TDS is to be deducted if the payment or aggregate payments in a financial year exceed Rs. 30,000 for a single contract or Rs. 1,00,000 cumulatively.

You must deduct TDS at the time of payment or credit, whichever is earlier.

Summary:
Service TDS Applicable? Section TDS Rate
Shifting heavy material/machinery Yes 194C 1% (individual/HUF), 2% (others)

Important:
Ensure you get the contractor’s PAN to deduct TDS correctly.

File the TDS return and provide the contractor with a TDS certificate (Form 16A).

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